Although noise is obviously a challenge the TZ5 manages to retain more fine detail than its predecessor. The good news is that the new processor (Venus IV) does a far, far better job with color, with none of the smearing and blurring of color that produce the characteristic the 'watercolor left in the rain' look of the TZ3. You're not going to want to print ISO 400 pictures too large, but there's no doubt the TZ5 rights many of the TZ3's wrongs.